As UK cities give data centres the green light as the government gears up for growth, we ask leading data centre experts for their thoughts on how local authorities and developers can work together to prioritise growth beyond the capital.
Research from data centre specialists, Onnec, has found local authorities in the UK’s 20 biggest cities have overwhelmingly greenlit planning permission for data centre projects, with only three out of 88 applications being declined. A further five were withdrawn, while plans for the East Havering Data Centre Campus are listed as undecided.
These findings come from extensive desk research of 44 councils over a month, to find planning applications in the last five years that mention ‘data centres’ or ‘data centers’.
The three projects declined were all in Sheffield, with the reasons being that proposals were ‘poor quality design’, ‘visually unattractive’, ‘inappropriate developments which would cause harm to the openness of the Green Belt’ and ‘out of keeping with the character and quality of the wider landscape’.
In September 2024, the UK designated data centres as critical national infrastructure and pledged to review rejected planning decisions for sites in Iver, Buckinghamshire, and Abbots Langley, Hertfordshire. These plans are part of the government’s drive for economic growth, with the government announcing £6.3 billion of global investment in UK data centres. These sites will provide the computing data and data storage to give the UK the infrastructure required to train and deploy AI technologies.
Government support is vital, but focus must move beyond London
The UK government has been focused on supporting and protecting a data centre industry that is powering the digital economy and is crucial to AI development. The Department for Science, Innovation and Technology (DSIT) has been central to this, explaining via an FOI that:
“Since its formation, the Department has been engaging positively and proactively with the sector and investors, coordinating across the government to ensure a consistent pro-growth approach and that data centre needs are considered in wider governmental policy. DSIT has a dedicated team of officials focusing on the security, resilience and growth of data infrastructure, including data centres, and has been undertaking internal civil service analysis to investigate the blockers to growth of the sector. Recently, DSIT designated data centres as Critical National Infrastructure, recognising their fundamental importance to the UK and the digital economy. This move aims to reassure businesses that the UK is a safe place to invest in data centres.”
Matt Salter, Data Centre Director, Onnec
While not every project will be at the scale of East Havering, the data shows a willingness from local authorities to invest and support data centres, with many already aligned with the government’s strategy to ride the wave of AI to supercharge economic growth and productivity.
Data centres are critical for driving AI growth, and with the race for AI supremacy in full swing, the UK has recognised that to get ahead, the right infrastructure must be in place. However, the rejections in Sheffield show more thought must be given to design to ensure sites are appropriate, adhere to local requirements, and serve the local community.
Data centres can become the new oil for regions and cities, but only if they are planned holistically – this means considering every aspect of the data centre, instead of focusing solely on factors such as power and cooling. For example, thinking about the importance of cabling in providing the bandwidth needed to get the most from data centre hardware.
Failing to take a holistic approach will result in sites that aren’t fit for purpose, don’t deliver on the UK’s needs, and degrade over time – poor planning could mean a new data centre can feel five years old after the first year of operation and in need of an expensive retrofit. The UK risks losing ground in the race for AI supremacy if data centres aren’t built to last.
Government support will only drive further investment and support for UK data centres. However, this investment must move beyond London – already the biggest data centre market in Europe – to ensure the whole country benefits, and to help overcome power and sustainability challenges facing the London market. Taking a country-wide focus will help kick-start local economies, drive broader digital skills and give every UK region a chance to compete and be part of the digital infrastructure foundations the UK needs to meet rising AI workloads and deliver economic growth.
Luisa Cardani, Head of Data Centres, TechUK
Data centres drive the UK economy, powering online banking, healthcare, streaming and remote work. Contributing £4.7 billion GVA and 40,000 jobs, their impact is set to double in five years. With growing digital demand, building sustainable, resilient data centres is vital for long-term growth. Local authorities and developers must prioritise key strategies to future-proof the nation’s digital economy and meet both current and future needs.
Energy efficiency and renewable energy integration
Data centres rely on energy, making efficiency crucial. Advanced cooling technologies, renewable energy integration via PPAs or on-site generation, and smart energy management systems are key to reducing consumption and achieving carbon neutrality. With AI driving a sixfold rise in electricity demand, modernising the grid is vital to support future growth.
Strategic location and planning support
Choosing the right location is an important factor when considering the planning and building of data centres. First of all, data centres should be situated in areas with robust power supply and connectivity infrastructure. Proximity to renewable energy sources and the potential for heat reuse in district heating systems should also be considered. Additionally, a supportive regulatory environment is crucial for the timely and sustainable development of data centres, and local authorities should streamline planning processes and provide clear guidelines for data centre development
Sustainable design and construction
Sustainable construction practices, including the use of prefabricated and modular data centres, can reduce the environmental impact and construction time. These methods also allow for scalability and flexibility in design, accommodating future technological advancements. Certification schemes like BREEAM or LEED can guide sustainable design and operational practices. Incorporating biodiversity enhancement measures, such as green roofs and walls, can further improve sustainability.
Collaboration and community engagement
Collaboration among industry, government and communities is crucial. Developers should engage stakeholders to address concerns and deliver local benefits, such as community facilities and infrastructure. Investing in education and training can bridge the industry’s skills gap, with partnerships with universities and colleges creating pathways for local talent. Early involvement of data centre representatives in policy discussions ensures alignment with sustainability goals and supports community growth.
Leveraging local digital ecosystems
Utilising insights from the techUK Local Digital Index can help identify regional strengths and areas for improvement in digital infrastructure. This index provides valuable data on digital skills, adoption, infrastructure and investment across the UK, guiding policymakers and developers in making informed decisions.
By prioritising these factors, local authorities and developers can build data centres that are not only sustainable and resilient but also catalysts for regional economic growth and innovation across the UK.
Alex Sharp, Chief Projects Officer, Data Centre, Nscale
The International Energy Agency (IEA) has found that data centre energy consumption could double by 2026, underscoring the urgent need for sustainable and resilient solutions. As such, local authorities and developers must be very intentional with their goals when planning these facilities, with environmental impact being a key consideration. This requires prioritising several key factors, including strategic location choices, technological innovation and collaboration with local communities. Beyond just London, these considerations are essential for ensuring data centres are not only resilient but also aligned with the UK’s net zero ambitions.
When considering the location of data centres, developers need to be both environmentally conscious and practical in their approach. Utilising brownfield sites – previously developed for industrial or commercial purposes – offers clear advantages. These sites already have vital infrastructure in place, which reduces construction waste and minimises disruption.
Furthermore, the choice of location should consider accessibility to renewable energy resources, such as hydroelectric or wind power. Sites near such resources are ideal for supporting advanced cooling systems, which are essential for efficient, long-term operations.
Technology is another critical element in delivering sustainable data centres. With the rapid advancements in GPUs and other technologies driving up energy consumption, optimisation is crucial. Here, AI can play a transformative role. By analysing vast amounts of data, AI can identify opportunities to reduce energy use and improve overall performance. This includes making electrical infrastructure and equipment more efficient.
However, building resilient data centres is not just about location and technology – it also requires strong collaboration with local communities. Addressing the ‘not in my backyard’ mindset associated with large-scale industrial projects is essential. Developers and the data centre industry must work closely with local authorities and communities during the planning process to explain both the benefits and impacts of these facilities. It will be crucial to highlight their potential to create jobs, boost local economies and manage environmental impacts responsibly so that it can foster greater acceptance. By demonstrating their commitment to becoming valuable community assets, data centres can transform public perception.
Ultimately, building resilient data centres hinges on a collective effort. By embracing innovation, prioritising sustainability and fostering collaboration, these energy-intensive facilities can align with the UK’s net zero transition and support regional and national long-term growth.
